Data Package getting "Login failed for user 'Domain\ComputerName$" error

PROBLEM

If you try to use Windows Authentication while creating a new Data Package and getting an error like this with these steps:

PLEASE NOTE: The user indicated in the error message is different between an environment that uses domain and Active Directory and one without. In an environment that uses domain and Active Directory you should see the user as a computer account (a user name with a "$" at the end) as shown in the screenshot above. In an environment without domain and Active Directory the user likely to be shown as ApplicationPoolIdentity which is the default identity for an application pool. 

 

RESOLUTION

This is caused by lack of privilege of the account that runs the Analyzer's application pool, you can find out which account Analyzer application pool is using via IIS:

To resolve this simply specify a different account for the application pool via Advanced Settings

NOTE:
This account can be a Managed Service Account that you have created (for environment with AD and domains)

Or simply the local administrator account like Administrator for environment without AD and domains. 

 

then add the account under the SQL Server Security folder. If you have specified the local Administrator as identity in the previous step then you might be able to skip the following since the local administrator most likely has already been added by the SQL Server Setup program during SQL Server initial installation and configuration. 

and grant necessary privileges. 

 

This should resolves the problem.